Industrial Competitiveness Enhancement Act

On December 4, 2013, the Industrial Competitiveness Enhancement Act was enacted.

The Act aims to securely implement the measures that are included in the Japan Revitalization Strategy, which was approved by the Cabinet on June 14, 2013, as the third “arrow” of Abenomics, for the purpose of revitalizing the Japanese economy and enhancing the industrial competitiveness of enterprises doing business in Japan.

To enhance such competitiveness, it is important for Japan to correct three distortions in the Japanese economy, namely, over-regulation, under-investment, and delay in consolidation. The Act will be the key driver to achieve this goal.

Specifically, the Government of Japan will enhance Japan’s industrial competitiveness by allowing preferential regulatory flexibility to individual enterprises through the System of Special Arrangements for Corporate Field Tests, as well as by facilitating approaches to the renovation of industries, including business restructuring aiming at a significant increase in profits and promoting venture businesses.